Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning
Question:
Direct materials..... $ 27,000
Direct labor ........ 472,500
Variable overhead ..... 15,000
Fixed overhead ..... 18,000
Required:
1. Calculate the prime cost per cleaning.
2. Calculate the conversion cost per cleaning.
3. Calculate the total variable cost per cleaning.
4. Calculate the total service cost per cleaning.
5. What if rent on the office that Jean and Tom use to run HHH increased by $1,500? Explain the impact on the following:
a. Prime cost per cleaning
b. Conversion cost per cleaning
c. Total variable cost per cleaning
d. Total service cost per cleaning
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1 Unit prime cost Direct materials Direct laborUnits 27000 47250015000 3330 2 Un...View the full answer
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